Nonprofit Accounting Solution Report edition
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1 Nonprofit Accounting Solution Report 2009 edition
2 Contents Introduction and Methodology 2 Products Used 3 Recommended Products 6 Integration with Other Programs 7 Expected Outcome of Next Evaluation 8 IT Staff Sizes 9 Respondent Demographics 10 About Campbell Rinker 12 1
3 Introduction and Methodology Introduction This study was initiated and conducted independently by Campbell Rinker, a firm that specializes in marketing research for the nonprofit sector. The survey questionnaire was developed by Campbell Rinker and reviewed by industry professionals. The results reflect actual user opinions not the opinions of Campbell Rinker. As an independent researcher, Campbell Rinker is not biased towards or against any of the companies or products mentioned in this report. Special thanks to TechSoup Global for collaborating with us on this project. TechSoup Global is a recognized leader in bringing technological empowerment and philanthropy to social benefit organizations. Visit their website to qualify for donated technology products: Methodology During September of 2009, Campbell Rinker ed approximately 12,450 survey invitations to nonprofit employees. Records originated from Campbell Rinker s internal database. In addition, invitations were sent to customers of TechSoup Global. From these sources, we collected over 3,830 qualified responses. To qualify, respondents had to work at a not-for-profit, and either use an accounting solution at the organization, or influence the organization s purchase decisions of such solutions. For some questions, respondents could respond for two separate products that they have recently used. Non-users were not asked questions relating to use, and respondents that did not influence purchase decisions were not asked purchasing-related questions. Thus the number of responses to each question in this report, and within each subgroup, will vary. 2
4 Products Used Combined: Q. Which accounting solution product does your organization primarily use? & Q. Which other accounting solution did you use? (within past three years) The not-for-profit universe encompasses an enormous variety of different types of organizations; from charities to schools to unions, from complex multi-national organizations to someone s weekend hobby. Because of this, it is difficult and somewhat pointless to attempt to determine market share for the universe as a whole. Below and on the following two pages we look at what products people are using two different ways. First, by the size of their organization as defined by the organization s annual revenue. Then we look at what organizations with different focuses are using. Products that are not used in great enough numbers are grouped into the Other row at the bottom. Product Under $1 million (n=1614) Revenue $1 mil. to $4.9 million (n=683) $5 million or more (n=368) CYMA FundAccounting Software (CYMA Systems Incorporated) 0% 1% 2% DAXKO Accounting (DAXKO) 0% 1% 1% Financial Edge, The (Blackbaud, Inc.) 1% 5% 12% FUND E-Z Accounting (FUND E-Z Development Corporation) 0% 3% 2% FundWare (Blackbaud, Inc.) 0% 2% 3% GMS Acct. & Financial System (Grant Management Systems) 0% 1% 1% Microsoft Dynamics GP (formerly Microsoft Great Plains) 1% 5% 14% Microsoft Dynamics SL (formerly Solomon) 0% 1% 7% MYOB (MYOB Limited) 0% 1% 1% Peachtree business versions (Sage Software, Inc.) 7% 10% 6% Peachtree nonprofit editions (Sage Software, Inc.) 4% 7% 3% QuickBooks for-profit software editions (Intuit, Inc.) 31% 21% 12% QuickBooks Nonprofit Edition software (Intuit, Inc.) 40% 30% 13% QuickBooks Online Edition (Intuit, Inc.) 6% 2% 1% Quicken (Intuit, Inc.) 16% 4% 2% Sage ACCPAC ERP (Sage Software, Inc.) 0% 2% 3% Sage MAS 90 ERP (Sage Software, Inc.) 0% 4% 6% Sage MIP Fund Accounting (Sage Software, Inc.) 2% 13% 17% ShelbyFINANCIALS (Shelby Systems, Inc.) 0% 1% 1% Others 12% 15% 23% 3
5 The following table shows what products different types of nonprofits are using. For example, a much larger proportion of arts-related organizations use Quicken than do health-related organizations. Product Arts, Culture, & Humanities (n=466) Education (n=937) Environment & Animals (n=269) Health & Medical (n=592) CMS FUND (Cougar Mountain Software, Inc.) 0% 0% 0% 1% CYMA FundAccounting Software (CYMA Systems Inc.) 0% 0% 0% 1% DAXKO Accounting (DAXKO) 0% 0% 0% 1% Financial Edge, The (Blackbaud, Inc.) 5% 5% 5% 4% FUND E-Z Accounting (FUND E-Z Development Corp.) 1% 1% 1% 1% FundWare (Blackbaud, Inc.) 1% 2% 1% 1% GMS Acct. & Fin. System (Grant Management Systems) 0% 0% 0% 0% Microsoft Dynamics GP (formerly Microsoft Great Plains) 2% 3% 2% 5% Microsoft Dynamics SL (formerly Solomon) 0% 1% 1% 2% MYOB (MYOB Limited) 0% 1% 1% 1% Peachtree business versions (Sage Software, Inc.) 5% 7% 4% 6% Peachtree nonprofit editions (Sage Software, Inc.) 5% 4% 2% 5% QuickBooks for-profit software editions (Intuit, Inc.) 26% 25% 28% 24% QuickBooks Nonprofit Edition software (Intuit, Inc.) 38% 38% 36% 32% QuickBooks Online Edition (Intuit, Inc.) 4% 4% 4% 3% Quicken (Intuit, Inc.) 17% 11% 16% 8% Sage ACCPAC ERP (Sage Software, Inc.) 0% 1% 0% 2% Sage MAS 90 ERP (Sage Software, Inc.) 1% 1% 1% 2% Sage MIP Fund Accounting (Sage Software, Inc.) 3% 5% 4% 11% ShelbyFINANCIALS (Shelby Systems, Inc.) 0% 0% 0% 0% Others 14% 15% 14% 17% (continues on next page) 4
6 (continuation of previous table) Product Human Services (n=1093) Public, Societal Benefit (n=542) Religion Related (n=317) Mutual/ Membership Benefit (n=100) CMS FUND (Cougar Mountain Software, Inc.) 1% 1% 0% 1% CYMA FundAccounting Software (CYMA Systems Inc.) 1% 0% 0% 1% DAXKO Accounting (DAXKO) 1% 0% 1% 0% Financial Edge, The (Blackbaud, Inc.) 5% 4% 2% 2% FUND E-Z Accounting (FUND E-Z Development Corp.) 2% 1% 0% 2% FundWare (Blackbaud, Inc.) 2% 2% 1% 2% GMS Acct. & Fin. System (Grant Management Systems) 1% 0% 0% 1% Microsoft Dynamics GP (formerly Microsoft Great Plains) 5% 4% 1% 7% Microsoft Dynamics SL (formerly Solomon) 2% 2% 1% 1% MYOB (MYOB Limited) 0% 1% 1% 0% Peachtree business versions (Sage Software, Inc.) 7% 8% 4% 12% Peachtree nonprofit editions (Sage Software, Inc.) 6% 5% 3% 5% QuickBooks for-profit software editions (Intuit, Inc.) 22% 25% 22% 30% QuickBooks Nonprofit Edition software (Intuit, Inc.) 32% 35% 39% 32% QuickBooks Online Edition (Intuit, Inc.) 3% 4% 5% 2% Quicken (Intuit, Inc.) 8% 13% 15% 11% Sage ACCPAC ERP (Sage Software, Inc.) 2% 1% 0% 2% Sage MAS 90 ERP (Sage Software, Inc.) 3% 2% 1% 1% Sage MIP Fund Accounting (Sage Software, Inc.) 10% 5% 3% 1% ShelbyFINANCIALS (Shelby Systems, Inc.) 0% 1% 4% 0% Others 12% 14% 25% 18% 5
7 Recommended Products Q. If an organization just like yours was thinking about adopting [product name] and they asked for your advice, would you recommend they adopt it? 1. Yes 2. No 3. Unsure We asked users if they would recommend the solutions that they have used. Based on this question, three products received our Campbell Award for User Satisfaction. Award Winners The Financial Edge (Blackbaud) Sage MIP Fund Accounting (Sage North America) QuickBooks Nonprofit Edition software (Intuit) The average number of ratings for each product considered for the awards was 221. The range was between 19 and 1,210 ratings. Products included in award consideration: CMS FUND (Cougar Mountain Software, Inc.) CYMA FundAccounting Software (CYMA Systems Incorporated) Financial Edge, The (Blackbaud, Inc.) FUND E-Z Accounting (FUND E-Z Development Corporation) FundWare (Blackbaud, Inc.) Microsoft Dynamics GP (formerly Microsoft Great Plains) Microsoft Dynamics SL (formerly Solomon) MYOB (MYOB Limited) Peachtree business versions (Sage Software, Inc.) Peachtree nonprofit editions (Sage Software, Inc.) QuickBooks for-profit software editions (Intuit, Inc.) QuickBooks Nonprofit Edition software (Intuit, Inc.) QuickBooks Online Edition (Intuit, Inc.) Quicken (Intuit, Inc.) Sage ACCPAC ERP (Sage Software, Inc.) Sage MAS 90 ERP (Sage Software, Inc.) Sage MIP Fund Accounting (Sage Software, Inc.) ShelbyFINANCIALS (Shelby Systems, Inc.) 6
8 Integration with Other Programs Q. How important to you is it for your accounting solution to integrate (work directly) with each of the following? [Scale: 1=Not at all Important, 10 = Indispensable] There are three levels of importance made apparent in the table below. We have identified the levels by color. Integration with spreadsheet software is obviously critical. We also see that larger and smaller organizations have somewhat varied needs when it comes to integration. Revenue Response Under $1 million $1 mil. to $4.9 million $5 million or more Spreadsheet software Word processing software Fundraising and donor/member management software software Online payment processing systems Payroll services Inventory management systems Point of Sale systems Smartphones and/or PDAs Time clocks and/or time clock software
9 Expected Outcome of Next Evaluation Q. The next time your organization evaluates the accounting solution it uses, do you think it will be more likely to... The next time organizations review their accounting solutions, they are most likely to upgrade the solution they currently use. Organizations with less than $1 million in revenue are significantly more likely than larger organizations to keep their solution as-is. Revenue Response Under $1 mil. to $5 million $1 million $4.9 million or more (n=1,607) (n=679) (n=365) Upgrade the current solution 44% 52% 52% Change to a different solution 10% 13% 13% Keep the solution as-is 27% 20% 19% Not sure 19% 15% 16% 8
10 IT Staff Sizes Q. How many full-time equivalent people (i.e., two half-time people equal one full-time equivalent person, etc.) do you have working in each of the following departments? - Information Technology (e.g. IT, Computer Support, Information Systems) On average, small organizations (under $1m) have a half-time person dedicated to IT, medium size organizations ($1m to $4.9 m) have about one full-time person, and larger nonprofits ($5m+) have two or more. 9
11 Respondent Demographics Nonprofits of all sizes are represented in this report. Revenue Percent Less than $100k 21% $100k to $499k 25% $500k to $999k 14% $1m to $4.9m 26% $5m to $9.9m 8% $10m or more 6% We asked respondents to specify the position level that best applies to them. The CEO/President/Executive Director level was most prevalent, representing a third of respondents. Job Title Percent CEO/President/Executive Director 33% Manager/Supervisor 22% Vice President or Director 21% Administration/Data Entry 9% Others 14% We asked respondents to specify their job areas. Executive management was the most frequent response. Job Areas Percent Executive Management 34% General Administration 18% Information Systems/Technology 18% Accounting 12% Finance 7% Development/Fundraising 5% Others 6% 10
12 We asked respondents what areas their organizations focus on. They could choose multiple answers, so the percentages exceed 100% when added together. Job Areas Percent Human Services 38% Education 33% Health 21% Public, Societal Benefit 19% Arts, Culture, and Humanities 16% Religion Related 11% Environment and Animals 9% Mutual/Membership Benefit 3% International, Foreign Affairs 2% Others 13% 11
13 About Campbell Rinker Campbell Rinker is one of a select few research firms in the United States that specialize in producing marketing research for nonprofits. Visit the following address to view our client list: campbellrinker.com/our_clients.html Campbell Rinker understands Attitudes, preferences, satisfaction, and motivations regarding intangible attributes and messages to donors, members, and alumni Attitudes, preferences, satisfaction, and motivations regarding services and tangible products for the nonprofit marketplace The meaning behind the numbers Campbell Rinker delivers... Qualitative Research & Analysis - Live and Internet Focus Groups, Bulletin Board Groups, One-on-One Depth Interviews Quantitative Research - Internet, Telephone, Mail-to-Internet and Mail Surveys, Intercept Surveys Proprietary Tools and Statistical Analysis Donor Satisfaction, Adoption Modeling, Message Testing, Alumni Segment Scoring, Gift Sensitivity Meter, Giving Club Benefit Testing, Member Benefit Assessment, New Offer Optimization Donor File Analysis economical yet comprehensive donation history reports and projections Syndicated Research Campbell Rinker publishes extensive research on American donors 12
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